China/NZ new Double Tax Treaty comes into force

Signed in April 2019, the new DTA came into force on 27th December 2019.

The new DTA intends to provide cross-border investors with more certainty about tax treatment, particularly for dividends, interest and royalties. It will do this by reducing withholding rates on certain dividends and eliminating double taxation.

The new agreement also reflects recent work by the Organisation for Economic Co-operation and Development (OECD) on base erosion and profit shifting (BEPS). The new agreement includes a number of anti-BEPS measures to improve the ability of both countries to detect and prevent tax evasion.

The new DTA with China does not apply to Hong Kong, which is managed by a separate DTA. 

This article from the 'A Week in Review' newsletter was originally published; Monday 20th January 2020. If you have any questions or would like a second opinion on any national or international tax issues, please contact me [email protected]. 

If you would like to receive these updates directly to your mail inbox, you can subscribe by clicking here.